Galleon Sinks; Informant Surfaces

By

Susan Pulliam

Updated Oct. 22, 2009 12:01 a.m. ET

Embattled hedge-fund giant Galleon Group will close, collapsing amid an insider-trading case that investigators say had its roots in a 2005 job search by a California hedge-fund manager facing a financial squeeze.

In a letter to employees and investors Wednesday, Galleon co-founder Raj Rajaratnam said the firm, bombarded with withdrawal requests from investors, will "conduct an orderly wind down" of its funds as it explores...